Karachi July 30 2022: Habib Sugar Mills Limited (HABSM) reported profit increased by 46% during the first quarter despite reporting loss in the textile segment, according to company’s filling to the exchange.
The Company has earned pre-tax profit of Rs. 1,456.12 million during the three quarters ended June 30, 2022 when compared with the profitability of Rs. 995.27 million during the quarter ended June 30, according to company filling to the exchange.
The crushing season 2021-22 commenced on November 17, 2021 and the plant operated upto March 19, 2022 for 123 days as against 108 days in the preceding season. Sugarcane crushed during the current season was 1,126,516 M. Tons with average sucrose recovery of 10.61 % and sugar production of 119,531 M. Tons as compared with sugarcane crushing of 761,667 M. Tons with average sucrose recovery of 10.36 % and sugar production of 78,910 M. Tons during the preceding season.
The Government of Sindh on November 4, 2021 issued a notification fixing the minimum sugarcane support price at Rs.250 per 40 kgs for the crushing season 2021 - 22 as against Rs.202 per 40 kgs for the crushing season 2020 - 2021. In addition, the sugar mills in Sindh are also required to pay quality premium at the rate of Re. 0.50 for every 0.1 percent sucrose recovery in excess of the bench mark of 8.7%.
The minimum support price fixed by the Sindh government was higher by Rs. 25 per 40/kgs as compared with the minimum support price of Rs. 225 per 40 kgs fixed by the Punjab government.
The sugar division earned operating profit of Rs. 416.91 million (June 30, 2021: Rs. 251.67 million). The increase in operating profit was mainly due to increased production and sale, improved sucrose recovery and better sugar selling prices as compared with the corresponding period.
The consumption of sugar in the Country ranged from 6.5 to 7.0 million M. Tons as against total production of 8.0 million M. Tons of sugar, resulting in surplus of over 1.0 million M. Tons. Considering the surplus sugar in the Country, the Pakistan Sugar Mills Association (PSMA) has written a letter to the Ministry of Finance requesting to allow export of sugar which will help to stabilize the sugar prices in the local market and enable the sugar mills to clear growers’ dues and repayment of bank loans.
The ethanol production during the three quarters ended June 30, 2022 was 25,299 M. Tons (June 30, 2021: 17,575 M. Tons). The division earned operating profit of Rs.892.82 million (June 30, 2021: Rs.502.21 million). The increase in profit of the division during the period was mainly due to increase in quantum of sales. The liquidified carbon dioxide (CO2) unit produced 6,342 M. Tons (June 30, 2021: 5,703 M. Tons). The contribution of the unit is included in the profit of the division.
The division suffered operating loss of Rs. (20.29) million during the three quarters under review (June 30, 2021: Rs.15.01 million). The loss suffered by the division was mainly due to reduced sale volume, higher cost of raw material and freight charges.
The Trading division earned operating profit of Rs. 75.99 million (June 30, 2021: Rs. 3.45 million). The profit of the Division for the current period is mainly attributable to the export of molasses.
Habib Sugar Mills Limited is a public limited company incorporated in Pakistan on February 08, 1962. The Company is engaged in the manufacturing and marketing of refined sugar, ethanol, liquidified carbon dioxide (CO2), household textiles, providing bulk storage facilities and trading of commodities.
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